Trade and markets


Commodity Group
Policy Category
Renewable energy
Policy Instrument
Biodiesel blending level.
Raised the country’s mandatory biodiesel blending rate from 5 to 7 percent.
THAILAND – biodiesel policy: In December, the Thai government unveiled plans to raise the country’s mandatory biodiesel blending rate to 7 percent, effective January 2014, up from the 5 percent rate in place since end-2012. The higher blending rate would boost the processing industry’s annual demand for palm oil by an estimated 240 000 tons. Eventually, however, the planned B7 implementation has been postponed due to the recent slowdown in domestic palm oil production. In response to these changes, the industry has called for a flexible biodiesel policy that would rest on variable blending rates. Furthermore, the three year-old cap on the retail price for palm cooking oil has been criticized for causing distortions in the domestic palm oil market. With regard to the longer term, the government has decided to raise the official biodiesel production target for 2021 from 5.9 million liters/day to 7.3 million liters/day, which compares to a present output level of about 2.8 million liters/day. Currently installed production capacity is said to amount to 5.4 million liters/day.